China begins returning Boeing aircraft to US

Core Viewpoint - Chinese airlines have started returning Boeing aircraft to the U.S. in response to the U.S. imposing 145% tariffs on Chinese goods, which has led to a halt in further deliveries of Boeing jets to China [1][4]. Group 1: Impact on Deliveries - A Boeing 737 Max recently returned to Seattle, marking the beginning of aircraft returns from China [1]. - Three 737 Max 8 jets that were prepared for delivery to Chinese airlines were recalled to the U.S. last week [2]. - A Boeing jet intended for Xiamen Airlines was seen landing back at Boeing's production hub, indicating a disruption in the delivery process [3]. Group 2: Domestic Business Effects - The halt in Boeing deliveries has affected domestic business, with a Chinese aircraft lessor facing challenges as another airline backed away from its commitment to take delivery [9]. - Analysts suggest that airline CEOs may prefer to defer plane deliveries rather than incur duties, which could negatively impact Chinese airline operations [9]. Group 3: Boeing's Market Position - Boeing, a significant U.S. exporter, is facing challenges in the Chinese market, where it aimed to compete with Airbus [11]. - Year-to-date deliveries show that Boeing has delivered 18 aircraft to nine airlines in China, with major airlines planning to take delivery of a total of 179 Boeing planes between 2025-2027 [11]. - The current situation follows a nearly five-year import freeze on 737 MAX jets in China due to safety concerns stemming from two fatal crashes [12].